Process Improvement Cycle Business process improvement (BPI) is a management exercise in which enterprise leaders use various methodologies to analyze their procedures to identify areas where they can improve accuracy, effectiveness and/or efficiency and then redesign those processes to realize the improvements. 01 Identify Whether it’s a process that is underperforming or important to a new strategy, identify & name it. 02 Mapping Gather all information from start to end; steps, requirements, inputs, outputs, time duration etc. 03 Analyze Analyze the gathered data and identify the bottlenecks & inefficiencies of the process. 04 Redesign Reengineer the whole process from start to end increasing efficiency altogether. 05 Implementation Implement improvement on a smaller scale to check it’s efficiency comparing to previous. 06 Monitor Monitor result before standardizing the process and before implementation on a larger scale.
Declining Sales Lack resources allocated Unclear of responsibility No monitoring/reporting No policy in place Process People Inappropriate Planning Reduced Quality Old management system Poor Inventory Management Production Deficiency in Promotion Dull Product Image Lack of Vital Expertise High Staff turnover Human Resource Marketing Root Cause Analysis (Fishbone)
DMAIC refers to a data-driven improvement cycle used for improving, optimizing and stabilizing business processes and designs. The DMAIC improvement cycle is the core tool used to drive Six Sigma projects. SIX SIGMA Analysis - DMAIC D M A I C Define the problem & what customer requires Select project – CTO’s Create project charter Measure the defects & process operation Identify project output metric Develop data collection plan Analyze & find causes of defect Identify the root causes Quantify the opportunity Improve the process Identify solution Refine & test solution Cost benefit calculation Control & monitor Implement process control Prepare roll-out solution Project Closure
Run Charts We’re tracking trends & to comparing our performance (e.g. delays, errors, reworks) before and after implementation of our solution to measure its impact. It focuses attention on vital changes in the process. Percentage Median Median = 22.5
Kaizen Implementation Lean Diagnostic Plan Do Check Action Baseline Analysis Develop Plan Coaching Follow Up Replace conventional fixed ideas with fresh ones. Start by questioning current practices and standards. Seek the advice of many associates before starting a Kaizen activity. Think of how to do something, not why it cannot be done. Think of how to do something, not why it cannot be done. Don’t make excuses. Make execution happen. Reduce expenses and manpower, and use of material, energy and resources. Implement a solution right away, even if it covers only 50 percent. Better products, service, working environment, and processes and practices. Correct mistakes right away. 01 02 03 04 05
Deming Cycle (PDCA) Plan Do Check Act Identifying a goal or purpose, formulating a theory, defining success metrics, eliminating potential problem and putting a plan into action. Implementing the plan on a small scale to prove or disprove it’s validity. If invalid, go back to the first step and restart the cycle Measuring and monitoring outcomes to test the validity of the plan. This allows for identification of potential problems and areas for improvement Taking the knowledge gained from the previous steps and putting it to use. This can either mean implementing it on a wider scale or restart the cycle P D C A
Process Redesign Empower employees Use generalists Maintain contact with customers Minimize Automation Do not empower employees Minimize the use of generalists Automated tasks Add control tracks Empower employees Use generalists Maintain contact with customers Minimize Automation Manage exceptions Use specialists Avoid adding control tasks Employee Focused Cost Focused Hybrid Workstream-focused Foundations Remove non-value adding tasks Re-sequence tasks (optimize flow)
Implementation- Gantt Chart (Project Track) Write Landing Page Copy Approve page copy Review landing page design Build landing page Code review landing page Write promotional email Design promotional email Send promotional email Analyze Campaign Results Plan Agenda for meeting Finalize presentation Approve presentation Mar 01 Mar 03 Mar 05 Mar 07 Mar 09 Mar 11 Mar 13 Mar 15 Mar 17 Mar 19 Mar 21 Mar 23 Mar 25 Mar 27 Mar 27 80% 35% 100% 27% 35% 55% 70% 35% 65% 50% 45%